The $3.7 billion-asset parent of Silicon Valley Bank had first-quarter earnings of $33.3 million, or 65 cents a share.

Chief executive officer Kenneth P. Wilcox blamed the drop in deposits on the dot-com sectors collapse. He said 350 companies that maintained deposit or credit relationships with Silicon Valley have gone out of business since the start of the year.

I dont know if the economy as a whole is in a recession, but the entire tech sector, from Cisco on down, must be, Mr. Wilcox said. The liquidity of the companies we serve has declined dramatically.

Fridays announcement spooked investors. In heavy trading the stock was down more than 14% late in the day, to $22.20.

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The increasing adoption of virtual card payments by accounts payable departments has created an unex­pected complication for suppliers: more friction in the processing, posting and reconciliation of payments and receivables.